[Federal Register Volume 72, Number 75 (Thursday, April 19, 2007)]
[Rules and Regulations]
[Pages 19668-19670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7437]


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AGENCY FOR INTERNATIONAL DEVELOPMENT

48 CFR Parts 731 and 752

[USAID Acquisition Regulation Acquisition Circular (AIDAC) 2007-1]
RIN 0412-AA60


Various Administrative Changes to the USAID Acquisition 
Regulations (AIDAR)

AGENCY: United States Agency for International Development.

ACTION: Final rule.

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SUMMARY: The U.S. Agency for International Development (USAID) is 
amending its Agency for International Development Acquisition 
Regulation (AIDAR) to: Remove all references to Office of Personnel 
Management's (OPM) obsolete Executive Service (ES-6) as the contract 
employee salary threshold and replace with revised terminology; revise 
the Medical Evacuation (MEDEVAC) Services clause and provisions by 
deleting the requirement for contractors to purchase MEDEVAC services 
insurance through a USAID centrally awarded contract; remove clause 
752.7016 FAMILY PLANNING AND POPULATION ASSISTANCE ACTIVITIES (AUG 
1986); and update the title of Office of Procurement (OP) to Office of 
Acquisition and Assistance (OAA) throughout.

DATES: This rule is effective July 18, 2007 without further action, 
unless adverse comment is received by May 21, 2007. If adverse comment 
is received, USAID will publish a timely withdrawal of the rule in the 
Federal Register. Submit comments on or before May 21, 2007.

ADDRESSES: Submit comments, identified by title of the Proposed Action, 
and RIN number by any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Fax: 202-216-3395.
    Mail: U.S. Agency for International Development, Office of 
Acquisition & Assistance, Policy Division, 1300 Pennsylvania Avenue, 
NW., Room 7.9-18, Washington, DC 20523-0001.
    Instructions: All submissions must include the title of the 
proposed action, and Regulatory Information Number (RIN) for this 
rulemaking. Please include your name, title, organization, postal 
address, telephone number, and e-mail address in the text of the 
message.

FOR FURTHER INFORMATION CONTACT: Carol Ketrick, Telephone: 202-712-
1382, e-mail: <a href="/cdn-cgi/l/email-protection#60030b05141209030b2015130109044e070f16"><span class="__cf_email__" data-cfemail="aecdc5cbdadcc7cdc5eedbddcfc7ca80c9c1d8">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Public Participation: Because security 
screening precautions have slowed the delivery and dependability of 
surface mail to USAID/Washington, USAID recommends sending all comments 
to the Federal eRulemaking Portal or fax number listed above (all 
comments must be in writing to be reviewed). All comments will be made 
available for public review without change, including any personal 
information provided, from 3 workdays after receipt to finalization of 
action at http://www.Regulations.gov.

A. Background

    The AIDAR reflects agency policy regarding the maximum annual rate 
of personnel compensation for contractor employees. The threshold 
beyond which contract employees' salaries require contracting officer 
approval is currently stated as being equivalent to OPM's ES-6 level. 
In 2003, Public Law 108-136 replaced the SES grade structure with a 
single, open-range ``payband''; therefore, the use of the ES-6 level as 
the threshold for contracting officer approval is no longer possible. 
USAID has established a new threshold, the ``USAID Contractor Salary 
Threshold'' or ``USAID CST,'' which is set forth in the agency's ADS 
Chapter 302 on Direct Contracting. The change to the AIDAR deletes all 
references to OPM's obsolete Executive Service (ES-6) level or ``ES-6 
policy'' and replaces it with this updated terminology.
    Emergency medical evacuation services are for individuals involved 
in accidents or suffering a sudden illness at a time when adequate 
medical facilities are not available at post. USAID implemented AIDAR 
752.228-70 ``Medical Evacuation (MEDEVAC) Services (Mar 1993)'', 
Appendix D--General Provision 25 ``Medical Evacuation (MEDEVAC) 
Services (Jul 1993)'', and Appendix J--General Provision 21 ``Medical 
Evacuation (MEDEVAC) Services (Jul 1993)'' which required contractors 
use USAID's central contract to purchase MEDEVAC

[[Page 19669]]

insurance for employees. The central contract incorporated a volume 
discount for these services, thereby saving insurance costs to the 
Agency. However, after more than ten years' experience with the 
centrally-awarded MEDEVAC contract, we have concluded that the 
difference in rates the Agency obtained through the competitive 
contracting process and the rates the insurance providers were offering 
to the general public was negligible and that continuing the central 
MEDEVAC contract was no longer in the Agency's best interest. USAID did 
not re-compete a new contract when the last MEDEVAC contract expired in 
2003; therefore, the requirement is obsolete. The entire clause and 
general provisions are revised both to remove the reference to the 
USAID central MEDEVAC services contract and to update the language 
overall.
    The clause AIDAR 752.7016 FAMILY PLANNING AND POPULATION ASSISTANCE 
ACTIVITIES (AUG 1986) is removed and the section reserved as the clause 
was made obsolete by guidance issued under Public Law 105-277 (FY 1999 
Foreign Operations Appropriations Act). The Act established new 
statutory requirements for voluntary family planning projects, known as 
the Tiahrt Amendment. The Tiahrt Amendment has been included in all 
subsequent Foreign Operations Appropriations Acts and its requirements 
will be incorporated by a proposed rule at a later date.
    This document also amends the AIDAR to make editorial changes 
deleting all references to Office of Procurement (M/OP) and replacing 
with Office of Acquisition and Assistance (M/OAA).

B. Regulatory Planning and Review

    This is not a significant regulatory action and, therefore, is not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601 et seq.), USAID has considered the economic 
impact of the rule and has determined that its provisions would not 
have a significant economic impact on a substantial number of small 
entities.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the AIDAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 731 and 752

    Government procurement.

0
For the reasons set forth in the preamble under the authority at Sec. 
621, Pub. L. 87-195, 75 Stat. 445 (22 U.S.C. 2381) as amended; E.O. 
12163, Sept. 29, 1979, 44 FR 56673; 3 CFR 1979 Comp., p. 435, the U.S. 
Agency for International Development proposes to amend 48 CFR Chapter 7 
as follows:
0
1. The authority citation for 48 CFR parts 731 and 752 continues to 
read as follows:

    Authority: Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C. 
2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673; 3 CFR 
1979 Comp., p. 435.

PART 731--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 731.2--Contracts With Commercial Organizations

0
2. Amend section 731.205-6 by revising paragraph (b) to read as 
follows:


731.205-6  Compensation for personal services.

* * * * *
    (b) Salaries and wages. It is USAID policy that if an employee's 
base salary plus overseas recruitment incentive, if any (see AIDAR 
731.205-70) exceeds the USAID Contractor Salary Threshold (USAID CST), 
as stated in USAID's Automated Directives System (ADS) Chapter 302 
USAID Direct Contracting (available at http://www.usaid.gov/policy/ads/300/302.pdf), it will be allowable only if approved in writing by the 
contracting officer. The contracting officer shall only provide such 
approval after internal Agency procedures for review/approval of 
salaries in excess of the USAID CST in ADS 302 have been followed. 
USAID policies on compensation of third country national or cooperating 
country national employees are set forth in AIDAR 722.170.
* * * * *

Subpart 731.3--Contracts With Educational Institutions

0
3. Amend section 731.371 by revising paragraph (b)(1) to read as 
follows:


731.371  Compensation for personal services.

* * * * *
    (b) * * *
    (1) The policies set forth in AIDAR 731.205-6(b) are also 
applicable to contracts with a nonprofit organization.
* * * * *

PART 752--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 752.228-70 by revising the clause to read as follows:


752.228-70  Medical Evacuation (MEDEVAC) Services.

* * * * *
Medical Evacuation (MEDEVAC) Services (JUL 2007)
    (a) Contractor must provide MEDEVAC service coverage to all U.S. 
citizen, U.S. resident alien, and Third Country National employees and 
their authorized dependents (hereinafter ``individual'') while overseas 
under a USAID-financed direct contract. USAID will reimburse 
reasonable, allowable, and allocable costs for MEDEVAC service coverage 
incurred under the contract. The Contracting Officer will determine the 
reasonableness, allowability, and allocability of the costs based on 
the applicable cost principles and in accordance with cost accounting 
standards.
    (b) Exceptions. (i) The Contractor is not required to provide 
MEDEVAC insurance to eligible employees and their dependents with a 
health program that includes sufficient MEDEVAC coverage as approved by 
the Contracting Officer.
    (ii) The Mission Director may make a written determination to waive 
the requirement for such coverage. The determination must be based on 
findings that the quality of local medical services or other 
circumstances obviate the need for such coverage for eligible employees 
and their dependents located at post.
    (c) Contractor must insert a clause similar to this clause in all 
subcontracts that require performance by contractor employees overseas.

0
5. Amend section 752.7007 by revising the date of the clause and 
paragraph (b) to read as follows:


752.7007  Personnel Compensation.

* * * * *
Personnel Compensation (JUL 2007)
* * * * *
    (b) Reimbursement of the employee's base annual salary plus 
overseas recruitment incentive, if any, which exceed the USAID 
Contractor Salary Threshold (USAID CST) stated in USAID Automated 
Directives System

[[Page 19670]]

(ADS) Chapter 302 USAID Direct Contracting, must be approved in writing 
by the Contracting Officer, as prescribed in 731.205-6(b) or 
731.371(b), as applicable.
* * * * *


752.7016  [Removed and Reserved]

0
6. Remove and reserve section 752.7016.

Subpart 753.3--Illustration of Forms

0
7. Amend Appendix D to Chapter 7 as follows:
0
A. Revise Section 4, paragraph (e)(3).
0
B. Revise Section 7, paragraph (k)(7).

0
C. Amend Section 12, General Provision 4 by revising the heading and 
paragraph (b).
0
D. Amend Section 12 by revising General Provision 25.
    The revisions read as follows:

Appendix D to Chapter 7--Direct USAID Contracts With a U.S. citizen or 
a U.S. Resident Alien for Personal Services Abroad

* * * * *
    4. * * *
* * * * *
    (e) * * *
    (3) This Appendix applies the ``USAID Contractor Salary 
Threshold (USAID CST)'' policy in Automated Directives System (ADS) 
Chapter 302.3.6.8 to salaries for U.S. PSCs. Salaries in excess of 
the USAID CST, which is equivalent to the maximum rate for Federal 
agencies without a certified SES performance appraisal system, must 
be approved by the M/OAA Director in accordance with the approval 
procedures in ADS 302.3.6.8(e). This approval cannot be re-
delegated.
* * * * *
    7. * * *
* * * * *
    (k) * * *
    (7) The approval for any salary in excess of the ``USAID 
Contractor Salary Threshold (USAID CST)'', which is equivalent to 
the maximum rate for Federal agencies without a certified SES 
performance appraisal system, in accordance with approval procedures 
in ADS 302.3.6.8(e) as required in Section 4.(e)(3);
* * * * *
    12. * * *
    4. Workweek And Compensation (Pay Comparability Adjustments) 
(JUL 2007)
* * * * *
    (b) Compensation (Pay Comparability) Adjustments. The PSC's 
compensation shall be adjusted to reflect the pay comparability 
adjustments, which are granted from time to time to U.S. direct-hire 
employees by Executive Order for the statutory pay systems (usually 
in January). Any adjustments authorized are subject to the 
availability of funds and shall not exceed that percentage stated in 
the Executive Order granting the adjustment. Further, the adjusted 
compensation may not exceed the annual ``USAID Contractor Salary 
Threshold (USAID CST)'', which is equivalent to the maximum rate for 
agencies without a certified SES performance appraisal system (or 
the equivalent hourly rate).
* * * * *

25. Medical Evacuation (MEDEVAC) Services (JUL 2007)

    (a) The PSC must obtain MEDEVAC service coverage including 
coverage for authorized dependents while performing personal 
services abroad.
    USAID will reimburse the total cost of MEDEVAC insurance to the 
PSC. The PSC must provide proof of coverage to the CO in order to 
receive reimbursement.
    (b) Exceptions. (1) A PSC and authorized dependents with a 
health insurance program that includes sufficient MEDEVAC coverage 
as approved by the Contracting Officer are not required to obtain 
MEDEVAC service coverage.
    (2) The Mission Director at the post of assignment may make a 
written determination to waive the requirement for such coverage. 
The determination must be based on findings that the quality of 
local medical services or other circumstances obviate the need for 
such coverage for PSCs and their dependents located at post.


0
8. Amend Appendix J to Chapter 7 in Section 12 by revising General 
Provision 21 to read as follows:

Appendix J to Chapter 7: Direct USAID Contracts With Cooperating 
Country Nationals and With Third Country Nationals for Personal 
Services Abroad

* * * * *
    12. * * *

21. MEDICAL EVACUATION (MEDEVAC) SERVICES (JUL 2007)

* * * * *
    (a) The PSC must obtain MEDEVAC service coverage including 
coverage for authorized dependents while performing personal 
services abroad.
    (b) Exceptions. (1) A PSC and authorized dependents with a 
health insurance program that includes sufficient MEDEVAC coverage 
as approved by the Contracting Officer are not required to obtain 
MEDEVAC service coverage.
    (2) The Mission Director at the post of assignment may make a 
written determination to waive the requirement for such coverage. 
The determination must be based on findings that the quality of 
local medical services or other circumstances obviate the need for 
such coverage for PSCs and their dependents located at post.
* * * * *

0
9. In Chapter 7:
0
I. Remove the words ``Office of Procurement'' and add, in their place, 
``Office of Acquisition and Assistance'' each time they appear in the 
following locations:
    a. 701.105(c).
    b. 701.301(a) introductory text.
    c. 701.303(c).
    d. 701.470 (a)(2).
    e. 702.170-3(a).
    f. 702.170-10(a)(1)(i).
    g. 728.105-1(b)(4).
    h. 731.109.
    i. 731.770(a).
    j. 750.7109-1
    k. 750.7110-1.
    l. 752.247-70(c)(1).
    m. 752.7002(p)(1)(i).
    n. Appendix D to Chapter 7, Section 12, General Provision 10, 
paragraph (n)(1)(i).
    o. Appendix J to Chapter 7, Section 12, General Provision 9, 
paragraph (m).
0
II. In addition to the amendments above, remove ``M/OP'', and add, in 
its place, ``M/OAA'' each time they appear.
    a. 701.105(c).
    b. 701.301(a) introductory text.
    c. 701.303(c).
    d. 701.470(a)(2).
    e. 701.470(b)(1).
    f. 701.470(b)(2).
    g. 701.470(b)(3)(i).
    h. 701.470(e).
    i. 701.470(f)(1).
    j. 701.601(a)(1).
    k. 701.601(a)(2) introductory text.
    l. 701.601(c)(2).
    m. 701.602-3(b)(2).
    n. 702.170-9.
    o. 705.502(a).
    p. 706.501.
    q. 709.403.
    r. 709.503.
    s. 714.406-3.
    t. 714.406-4.
    u. 716.303(c).
    v. 726.7005.
    w. 728.105-1(b)(4).
    x. 733.103-71(a).
    y. 733.103-71(c).
    z. 733.103-72(a).
    aa. 733.103-73(h).
    bb. 733.103-73(i).
    cc. 734.002-70.
    dd. 749.111-70(a)(1).
    ee. 749.111-70(b).
    ff. 749.111-71(b).
    gg. 750.7105.
    hh. 750.7109-1.
    ii. 750.7110-1.
    jj. 750.7110-2.
    kk. 750.7110-3 introductory text.
    ll. 750.7110-4.
    mm. Appendix D to Chapter 7, Section 4, paragraph (e)(3).

Michael F. Walsh,
Procurement Executive.
[FR Doc. E7-7437 Filed 4-18-07; 8:45 am]
BILLING CODE 6116-01-P


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